Manuel Orozco Inter-American Dialogue March 5 th , 2009
Migration and remittances in Cuba Migration from Cuba has increased and expanded to countries � other than the United States, Spain (23%) in particular; Cuban relatives of migrants say that economic reasons are a � key rationale informing their departures; Nearly forty percent of these relatives also say that they are � planning to migrate at some point in the near future, pointing to economic and political reasons; Remittance recipients are receiving relatively similar amounts of � money compared to four years ago, but do so increasingly from informal means; The cost of remitting to Cuba is among the most expensive in � Latin America (13% of the average sent, or double of what it costs elsewhere in Latin America); The average length of time receiving money is eight years; �
Migration and remittances in Cuba cont. Over half of the migrants in the U.S. have visited the country, � 20% alone in 2008; However, engagement with the home country is limited to one � or two activities, such as remitting, calling or visiting the island; The majority of migrants agree that legislations and policies in � the U.S. and Cuba restricting remittances have diminished their ability to remit to their relatives, and in fact, 36% says they are remitting less than in 2007; Over one third of remittance recipients are saving, with a � median of US$500; Their method of savings often involves investing in some � small economic activity.
Year the relative emigrated from Cuba United States 1987 Spain 1998 Italy 1999 Switzerland 2000 Germany 1998 Venezuela 2001 France 2000 Mexico 1996
Reasons why the relative migrated (%) D .Rep. Honduras Nicaragua Cuba To improve the life of the family 52 23 25 38 Because salaries are too low 11 21 12 26 To send Money to his family 18 27 10 21 Because of contacts w/friends and 10 15 11 12 family living abroad Because is hard to find job 8 19 43 9
Plans to migrate and reasons… (%) Honduras Nicaragua Dom. Cuba Republic Plans to migrate 13 24 30 39 Family reunification 15 11 15 38 Too high cost of living/ one 61 23 64 35 cannot live here Political situation 15 5 23 No jobs 8 56 17 4
2005 2009 Receiving from the U.S. 81% 53% Receiving from the Spain 12% 23% Remittance Length of years receiving 4 8 transfers to Amount received $150 $150 Frequency receiving p/year 6 8 Cuba, 2005 Receiving from parents 18% 14.6% and 2009 Receiving from children 26% 33.1% Receiving from siblings 22% 31.5% Receiving from others 34% 20.8% Receives via MTO 59.8% Receives via “Mula” 40.2% Received less than in previous year 29% 6.7% Received more than in previous year 13% 10.6% Received same as in previous year 58% 82.7%
Remittance transfer method (%) Receiving from … Other USA Total MTO 71 54 60 Traveler 29 46 40 Total 100 100 100
Remittances and its marketplace Cost of sending Amount Amount 2009 2005 as share of Paid Sent (%) (%) amount (US$) (US$) remitted (%) Money transfer 17 29 207 56 82 operators Travelers 13 25 220 44 18
Problems faced when remitting Problems (%) Sending cost is very expensive 73 Foreign Exchange costs are expensive 72 Restrictions in the U.S. legislation affect my ability to remit to my family 47 Limits in amounts do not contribute to help with needs in Cuba 45 The tax the family has to pay in Cuba is another problem. 41 There are not many options to choose from when remitting 38
Last year visited Cuba (%) New New Florida York Jersey Has not returned to Cuba 62.0 56.2 23.5 Before 1990 22.0 22.5 1.2 Between 1991 and 2000 8.0 10.0 4.7 Between 2000 and 2007 8.0 11.2 48.2 In 2008 .0 .0 22.4
Level of engagement among Cuban migrants (%) NY NJ FL Very little engagement 23 25 15 Moderately engaged 75 73 55 Significantly engaged 2 3 30
Engagement and U.S. Citizenship status (%) Not U.S. citizen U.S. Citizen Very little engagement 17 21 Moderately engaged 56 69 Significantly engaged 27 11
What does your saving or investment consist of? (%) Cuba D.R. Nic. Hon. Investment in a business 34 17 15 13 Medical insurance 0 13 0 6 Savings account in bank, MFI, 12 15 18 16 cooperative Mutual fund 0 1 30 6 Purchase of goods (house, 28 3 2 4 car) Purchase of animals 6 0 2 2
What do you use/plan to use your savings for? (%) Cuba Hon. Nic. D.R. 25 12 13 14 Basic Family Necessities In Case of an Emergency 25 16 31 30 Family Enjoyment 6 5 2 3 Debt Payments 1 To Start a Business 5 7 10 10 Car Or House Improvement 21 4 3 6
The more remittances received the higher the amounts saved…
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